October 2021

A 2020 survey from Schwab Retirement Plan Services found the average 401(k) participant thinks they’ll need $1.9 million to retire, a 12% increase from the previous year’s survey.1 Of course, many people in the U.S. aren’t investing enough to reach that savings goal—and the income it brings.

When you work for someone else, that employer takes Social Security taxes out of your paycheck and sends the money to the Internal Revenue Service (IRS).1 But things work a little differently for people who are self-employed. If you fall into this category, keep reading. This article will help you understand how to calculate the Social Security taxes you owe.